Questions from Intermediate Accounting

Q: Laurin Corporation offers parental benefits to its staff as a top-

Laurin Corporation offers parental benefits to its staff as a top-up on Employment Insurance benefits so that employees end up receiving 100% of their salary for 12 months of parental leave. Ruzbeh Aw...

Q: Primeau Inc. pays its officers bonuses based on income. For

Primeau Inc. pays its officers bonuses based on income. For 2017, the bonuses total $350,000 and are paid on February 15, 2018. Prepare Primeau’s December 31, 2017 adjusting entry and the February 15,...

Q: IFRS allows per share amounts to be reported on items other than

IFRS allows per share amounts to be reported on items other than earnings. Instructions: (a) Adopt the role of the ethical accountant and write a short essay on the pros and cons of allowing companie...

Q: Lu Corp. erected and placed into service an offshore oil platform

Lu Corp. erected and placed into service an offshore oil platform on January 1, 2017 at a cost of $10 million. Lu is legally required to dismantle and remove the platform at the end of its nine-year u...

Q: Refer to the information for Lu Corp. in BE13-20

Refer to the information for Lu Corp. in BE13-20. Prepare any necessary adjusting entries that are associated with the asset retirement obligation and related expenses at December 31, 2017, assuming t...

Q: Refer to the information for Lu Corp. in BE13-20

Refer to the information for Lu Corp. in BE13-20 and BE13-21. Assume that the increase in the asset retirement obligation in 2017 related to the production of oil in 2017 was $61,942. Prepare any nece...

Q: Cozy Home Inc. offers its customers two furnace maintenance services.

Cozy Home Inc. offers its customers two furnace maintenance services. One service is for a one-time cleaning and servicing of a home furnace at a cost of $100. Customers can earn a 5% discount from th...

Q: The following information is available for Antoine Corporation’s pension plan for the

The following information is available for Antoine Corporation’s pension plan for the 2017 fiscal year: Defined benefit obligation, 1/1/17, accounting basis, before plan amendment………….$255,000 Fair v...

Q: Jupiter Corp. provides at no extra charge a two-year

Jupiter Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2017. In that year, Jupiter sold products for $2.5 million and spent $68,000 servicing w...

Q: Upland Limited borrowed $40,000 on November 1, 2017

Upland Limited borrowed $40,000 on November 1, 2017 by signing a $40,000, three-month, 9% note. Prepare Upland’s November 1, 2017 entry; the December 31, 2017 annual adjusting entry; and the February...